Colonial Commercial Corp. Reports First Quarter Operating Results; Strategic Investments Expected to Benefit Earnings In Second Half of FY2000.Business Editors LEVITTOWN, N.Y.--(BUSINESS WIRE)--May 12, 2000 Colonial Commercial Corp. ("Colonial") (Nasdaq: "CCOM CCOM Cheshil.com CCOM Conference Council on Ministries (United Methodist Church) CCOM Chicago College of Osteopathic Medicine CCOM Conseil Canadien des Organismes de Motoneige CCOM Call Center Operations Management CCOM Center of Coastal Ocean Mapping ", "CCOMP"), which through its subsidiaries manufactures and/or distributes doors, door hardware and climate control products and systems to contractors and architectural firms An architectural firm is a company which employs one or more licensed architects and practices the profession of architecture. History Architects (master builders) have existed since early in recorded history. The earliest recorded architects include Imhotep (c. , today announced operating results for the first quarter of the year 2000. For the quarter ended March 31, 2000, revenues increased 93% to $11.6 million, compared with revenues of $6.0 million in the 1999 quarter. The increase in revenues was attributable to Colonial's June 1999 acquisition of Universal Supply Group, Inc. ("Universal"). The Company's Atlantic Hardware and Supply Corporation ("Atlantic") subsidiary experienced a decline in first quarter revenues due to the timing of shipments to certain customers. Atlantic's confirmed order backlog approximated $15.2 million at the end of the most recent quarter, which represented a 28% increase when compared with its backlog at March 31, 1999. For the quarter ended March 31, 2000, Colonial reported a net loss of $341,099 ($0.22 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share), compared to net income of $151,165 ($0.05 per diluted share) in the first quarter of 1999. "Our first quarter operating results have been penalized pe·nal·ize tr.v. pe·nal·ized, pe·nal·iz·ing, pe·nal·iz·es 1. To subject to a penalty, especially for infringement of a law or official regulation. See Synonyms at punish. 2. by certain investments which are expected to significantly enhance shareholder values over the longer-term," commented Bernard Korn, Chief Executive Officer of Colonial Commercial Corp. "We have identified significant growth opportunities in the climate control segment of Universal's business. During the first quarter, that subsidiary incurred costs associated with the expansion of its control systems operations, including the opening of a new sales and distribution office in Long Island City, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ." "Also during the first quarter, we completed the acquisition of Well-Bilt Steel Products, Inc.("Well-Bilt"), a manufacturer of steel doors which complements Atlantic's door hardware distribution business. Well-Bilt also supplies security doors to the detention (prison) industry, which represents a significant new market opportunity for Colonial. Because the acquisition was not completed until March 24, 2000, Well-Bilt did not contribute to our first quarter revenues, but we incurred substantial costs related to the start-up of its relocated manufacturing facilities. Our second quarter operating results will continue to be negatively impacted by losses at Well-Bilt, but we expect the subsidiary to become profitable during the third quarter." "We expect these recent investments for expansion at Universal and Well-Bilt to positively impact earnings during the second half of the current year," continued Korn. "We are confident that we have established a group of operating companies operating company A business that engages in transactions with outsiders. with successful business models and we look forward to 2001 and future years with great optimism." Following the acquisition of Well-Bilt, Colonial's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenue "run rate" is believed by management to approximate $70 million. Colonial is headquartered in Levittown, New York Levittown, a suburb of New York City, is a hamlet and unincorporated political subdivision of New York State located on Long Island in Nassau County, New York. As of the 2000 census, the community had a total population of 53,067. . Its common stock is traded on Nasdaq under the symbol, "CCOM", while its convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. trade on Nasdaq under the symbol, "CCOMP". (Note: Each share of the Company's convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". is convertible into one share of the Company's common stock. Preferred stockholders will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to a dividend, based upon a formula, when and if any dividends are declared on the Company's common stock). This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
COLONIAL COMMERCIAL CORP.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended
March 31, March 31,
2000 1999
Sales $ 11,604,330 5,987,085
Cost of Sales 8,080,566 4,268,971
Gross Profit 3,523,764 1,718,114
Operating Expenses 3,869,300 1,489,598
Operating Income (Loss) (345,536) 228,516
Interest and Other Income
(Expense), net (223,563) 32,349
Income (Loss) Before
Income Taxes (569,099) 260,865
Income Taxes (228,000) 109,700
Net Income (Loss) (341,099) 151,165
Net Income (Loss) Per
Common Share:
Basic $ (0.22) $ 0.10
Diluted $ (0.22) $ 0.05
Weighted Average Common
Shares Outstanding:
Basic 1,523,216 1,470,367
Diluted 1,523,216 3,125,471
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion